Nigeria’s cryptocurrency landscape is entering a new era as the government rolls out major regulatory reforms to bring structure, security, and compliance to the fast-growing digital-asset market. The latest updates mark a shift from previous restrictions toward a more formal, regulated framework led by the Securities and Exchange Commission Nigeria (SEC).
Crypto Now Classified as Securities Under ISA 2025
The newly implemented Investments and Securities Act 2025 (ISA 2025) officially categorizes cryptocurrencies and other digital assets as securities. With this designation, the SEC now holds full authority over crypto-related activities across the country.
This means digital-asset service providers—such as exchanges, wallet operators, custodians, and token issuers—must obtain proper SEC licensing before they can legally operate in Nigeria.
Licensing Requirements for Crypto Exchanges
Under the updated regulations, crypto exchanges must undergo SEC registration and satisfy strict requirements that include:
- Anti-money laundering (AML) controls
- Know-your-customer (KYC) verification
- Transaction monitoring systems
- Investor-protection mechanisms
- Transparent financial reporting
Only a few exchanges—mainly those that participated in the previous regulatory sandbox—currently have full approval. Many others are still awaiting licensing under the new process.
Stablecoin Issuers Face New Compliance Rules
The SEC now requires stablecoin issuers to demonstrate reserve backing, transparent audits, and strong risk management structures. These rules are expected to increase trust, especially for cross-border transactions and remittances.
Related Post: Nigeria's Crypto Crossroads: from ban to national stablecoin
Regulatory Gridlock and New Tax Enforcement Coming in 2026
Despite the advantages of regulation, experts warn of temporary slowdowns as Nigeria prepares to implement the Nigeria Tax Administration Act 2025 (NTAA) in January 2026.
Key expectations include:
- Mandatory registration with federal tax authorities
- Detailed transaction reporting
- Strict record-keeping for traders and exchanges
- Penalties for non-compliance
The uncertainty during this transition may push some activity back into peer-to-peer (P2P) markets, increasing exposure to unregulated transactions.
CBN and SEC Strengthen Their Collaboration
The Central Bank of Nigeria (CBN) has confirmed ongoing collaboration with the SEC to build a unified digital-asset policy. This shows a shift from the earlier restrictive stance on crypto toward a more balanced, innovation-friendly approach.
Lawmakers Caution Against Criminalising Crypto Users
Members of Nigeria’s House of Representatives have urged regulators not to criminalise young Nigerians who use crypto for trading, savings, or online income. They emphasised that blockchain participation is not inherently illegal and should be supported through fair regulation.
What This Means for Crypto Users in Nigeria
- Use only SEC-licensed platforms to stay protected
- Expect stronger KYC/AML requirements from exchanges
- Prepare for tax compliance and reporting rules starting 2026
- Stablecoins may become more secure and widely regulated
- A clearer regulatory framework may reduce scams and increase investor confidence
Nigeria’s evolving crypto landscape shows promise, but users must stay informed and compliant as the new regulatory era begins.
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